SUPERMARKET chain Safeway has seen its share of the market decline since it was taken over by rival Morrisons, industry analysts have found.

Safeway accounts for only 5.8 per cent of supermarket sales in Britain, down from 8.8 per cent a year ago.

The result means the combined Safeway and Morrisons operation saw its market share fall from 14.8 per cent last year to 13.2 per cent now, according to figures from analysts TNS.

TNS said some decline was inevitable due to the sale of 52 Safeway stores as required by the Competition Commission.

According to the figures, which compare sales over a 12 week period up to November 7 this year with the same period last year, Morrisons has increased its share from six per cent to 7.4 per cent.

Sainsbury's is gradually clawing back its market share, from 15.3 per cent two months ago to 15.5 per cent now, but is still down on the 15.8 per cent share it had 12 months ago.

Tesco, already the country's largest chain, saw its share of the British market grow to a record 28.3 per cent - up from 26.5 per cent last year.